Seamless transition to the formal econony vital

Finance and Public Service Minister Audley Shaw says the ease of doing business in Jamaica must facilitate a seamless transition of businesses operating informally to the formal economy.

Speaking at the annual LatinFinance Caribbean Investment and Finance forum at the Montego Bay Conference Centre last week, Shaw noted that potential entrepreneurs were often discouraged from utilizing the formal procedures to establish businesses.

This, he said, was because of bureaucracy, while noting "clear and overwhelming evidence" of informal practices, particularly among micro, small and medium-size enterprises (MSMEs).

"What we find is that these entrepreneurs often resort to operating within the informal sector, which has less protection for labour conditions," Shaw pointed out.

He said that placed them at a great disadvantage as it renders them more vulnerable to labour shocks.

Hence the need to ensure that the process for establishing businesses is more accommodating, Shaw added.